A Holistic Approach to CSR

By integrating social responsibility and corporate practices, UnitedHealth Group and others are seeing healthy results.

By Lois Quam

Throughout the past century, our nation has consistently returned to the debate about the economic and social responsibilities of corporations and their accountability to society. Traditionally, corporate social responsibility (CSR) was narrowly defined as either: 1) putting profits toward philanthropic programs that may or may not be connected to the business, or 2) promising to operate in a better way (e.g., becoming cleaner, more efficient or more transparent). But over this last decade we have begun to see dramatic changes in the way corporations conceptualize and practice CSR.

Companies increasingly recognize they can no longer claim to create societal value simply by being engines of prosperity that complement the job of government. Similarly, those that approach CSR primarily as a reputation enhancer—packaged for public consumption, and wrapped up in rhetoric about serving society—are beginning to understand that this relegates them to the margins of their business model. An optimal CSR program, instead, flows from and complements a company’s core work, operating at the nexus of both the company’s and society’s interests.

Responsible companies are now seizing and creating opportunities to help solve pressing societal problems that are fundamentally connected to their core business, and are transforming themselves in the process. They are integrating socially responsible practices into the very fabric of their operations, from the suppliers they use to the products they sell. According to a 2005 KPMG survey, 68 percent of Fortune 250 companies now publicly report on their social and environmental initiatives as well as their financial performance.

One excellent example of transformational CSR is Toyota and its hybrid cars. As climate change concerns and fuel costs began to skyrocket, rather than approach this issue as the government’s responsibility and a threat to their bottom line, Toyota confronted the challenge. It invested in a fundamentally new way of powering cars—the hybrid engine—even though there was no guarantee the public would embrace it. But the public did. As a result, Toyota strengthened its brand, delivered terrific value to its shareholders and employees, and took us one step closer to addressing today’s most pressing energy challenge.

Another corporation, PepsiCo, was positioned in the bull’s eye of growing concern over childhood obesity. In response, the company increased its company holdings beyond core brands by acquiring Tropicana and Quaker Oats (which owned Gatorade) in 1998 and 2001, respectively. Orange juice and oatmeal helped position PepsiCo as a more health-conscious company. Today, 40 percent of PepsiCo’s domestic revenues and two-thirds of the foods and drinks in development come from healthier products.

This demonstrates the new corporate social responsibility in action. As a healthcare company, UnitedHealth Group has a strong imperative to address social issues. UnitedHealth Group is known variously as a health insurer, a provider of health information and financial services, and a provider of specialized healthcare services. But everything we do is geared toward a fundamental mission: improving the health and well-being of individuals, families and communities.
Our mission compels us to confront some of the biggest challenges facing this nation, especially the major deficiencies in our healthcare system. We must be dedicated to finding creative and practical ways to make the healthcare system work better for all Americans.

We are doing this by enhancing access to health care and making it more affordable, particularly for minority and underserved communities, seniors, the chronically ill and low-income Americans. By sharing extensive clinical knowledge with healthcare providers and by fully leveraging technology, we are also helping to improve the quality of health care while making the healthcare system easier to navigate.

For UnitedHealth Group, this type of progress is the essence of CSR. We are uncovering opportunities that also help tackle significant problems plaguing today’s healthcare system. We know that we cannot address these issues alone. We collaborate with key stakeholders, including government agencies, physicians and care providers, employers, purchasers, consumers and nonprofit organizations such as the Rainbow Coalition and League of United Latin American Citizens.
Some of the most compelling advances and ideas in healthcare policy today are bringing the government and companies together in ways that leverage the strengths of both. Government can ensure the widest application of healthcare coverage, particularly among the most vulnerable Americans, and make all parties play by the same rules. Companies can provide creative and sustainable ways to fulfill government objectives.

UnitedHealth Group’s Evercare, which serves the elderly, chronically ill and those with disabilities, provides a good example. These individuals need a high level of care, which is challenging to obtain in a disjointed and often confusing healthcare system. Evercare works through Medicare and Medicaid to raise the standard of care available while cutting down on cost and confusion. Nurse practitioners and care managers work closely with enrollees and their doctors, families and community service providers to develop a personalized care plan, coordinate health care and help ensure effective integration of treatments. The proven results of Evercare’s approach are substantially increased preventive care, early detection of potential problems and reduced illnesses and hospitalizations. In short, a better quality of life for patients, and health at lower cost for everyone.

As greater numbers of companies switch to a more integrated business model—one that’s socially responsible as well as highly relevant to a company’s business mission—the pace of positive social change will likely increase. This trend has the potential to hasten the development of innovative, cost-effective solutions to many of today’s greatest challenges, from improving health and protecting our environment to making life better for employees and for the communities in which we live and work.

Lois Quam is Executive Vice President, UnitedHealth Group, and President, Public and Senior Markets Group. She served as a Senior Advisor to the 1993 White House Task Force on National Health Care Reform.